IRS seeks to partner with crypto companies to fight financial crime

[ad_1]

Editor’s Note: With such volatility in the markets, stay up to date with daily news! Get our quick roundup of today’s must-see news and expert opinion in minutes. Register here !

(Kitco News) – Amid pressure to regulate the cryptocurrency industry following the crash in value seen in 2022, the U.S. Internal Revenue Service (IRS) is seeking to strengthen its oversight of the nascent asset class by hiring hundreds of new officers in 2023, many of whom will be directed to work on digital assets and cybercrime.

During a recent interview conducted by The Wall Street Journal’s Risk & Compliance Journal with Thomas Fattorusso, the Special Agent in Charge of the IRS-CI Field Office in New York, the IRS agent suggested that ” cryptocurrency is here to stay” and that the tax collection agency wants to partner with the industry to fight financial crime.

The IRS-CI is the law enforcement arm of the IRS – often referred to as “armed accountants” – and is tasked with handling cases ranging from money laundering to Russian sanctions.

According to Fattorusso, the agency cannot take a hostile approach to technology and instead needs to adopt it because “it’s not going anywhere anytime soon and it’s getting more legit as the years go by,” while also getting more sophisticated.

Fattoruso stressed that it is a goal of the IRS to work to get more cooperation from crypto companies and to develop a non-litigation relationship that is more symbiotic than adversarial.

“It helps them in their legitimacy. It’s a new industry for everyone. I think we’re still trying to find our way there. Companies are fumbling around that,” the special agent said.

While many have voiced objections to the talent revolving door that mixes between the government and the crypto industry, Fattoruso signaled that the agency welcomes the process as a way to foster ties between the two parties.

“Several of our cyber agents and managers have gone to private companies. We find these partnerships to be beneficial as they understand what we need from a law enforcement perspective to investigate cybercrime,” he said. “And they can help us in this area. And now we have an open flow or an open dialogue that we didn’t have before because we didn’t have contact there.

“We hope to develop these relationships even further,” added Fattoruso.

The IRS-CI boss also noted that the agency is currently in the midst of a hiring drive with a focus on recruiting young talent with a technical background who want to dedicate their lives to service, fight against fraud and general law enforcement work. “We’ve hired data scientists in CI very well over the past few years, which is brand new for us,” he said.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

[ad_2]